Uncertainty over whether the federal government will continue providing subsidy payments to insurers for lower-income customers has created premium hikes for next year’s rates.
Indiana health insurance providers are raising premiums on the Affordable Care Act marketplaces to higher rates than previously anticipated next year, according to IndyStar. CareSource Indiana Inc. had initially announced a 2 percent increase for 2018 health insurance rates. But CareSource raised next year’s rates to 20 percent due to uncertainty over whether the federal government will provide subsidies for low-income customers on the ACA exchange. Centene increased their rates by 36 percent—up from the 24 percent hike that the insurer initially reported for 2018.
The average monthly premium on a CareSource plan next year will be $498, and $496 on a 2018 Centene plan, according to the Indiana Department of Insurance.
Individuals who make approximately $48,000—or four times the federal poverty level—qualify for subsidies that cover how much they’re required to pay as a share of their income, so they’re unlikely to be affected by the premium hikes. However, individuals that don’t qualify for federal subsidies to pay their premiums will bear the brunt of the rate increase. There is a chance that rebates will be given to individuals who pay the higher rates, but this hinges upon whether the federal government continues subsidy payments to insurers.
